Intel on Tuesday reported encouraging third-quarter financial final results considering the moribund state on the international Pc industry for the previous a number of quarters.
The world's biggest Computer and server chip maker reported income of $13.5 billion for its third quarter, up five % in the second quarter and flat compared using the third quarter of 2012. Earnings of $3 billion had been up to the tune of 48 % sequentially, as Intel cleared a cool $1 billion a lot more in net earnings than it had in the second quarter.
"The third quarter came in as expected, with modest development in a difficult environment," Intel CEO Brian Krzanich stated within a statement. "We're executing on our method to provide an increasingly broad and diverse solution portfolio that spans key growth segments, operating systems, and form elements. Given that August, we've introduced much more than 40 new items for industry segments in the Internet-of-Things to datacenters, with an increasing focus on ultra-mobile devices and 2 in 1 systems."
Intel's Data Center Group enjoyed its best sales quarter ever, the organization said, with revenue of $2.9 billion around the quarter, representing a 6.2 % sequential increase and a 12.2 % year-over-year jump. The chip giant's non-server, non-PC Intel architecture businesses had third-quarter sales of $1.1 billion, up 13.three percent in the second quarter but down 9.3 percent in the same period final year.
But Computer business watchers will likely be most interested in the third-quarter numbers for Intel's Pc Client Group. That essential business unit had income of $8.four billion, which was a three.5 percent raise from the second quarter but a three.5 % decline year more than year.
Patrick Moorhead, principal analyst for Moor Insights & Strategy, stated Intel's overall financials and its Pc unit numbers in particular were an encouraging sign for the company.
"Considering PCs are suffering, Intel had a great third quarter. The proving ground for Intel will be during the holidays when the latest Intel-based 2-in-1's and Android tablets hit the market place," Moorhead stated.
It may be too soon to say, but Intel's showing could point to the second quarter of this year being the bottoming out period for a international Pc market place that has shrunk for six straight quarters, according to Gartner.
So far this year, both Gartner and IDC have pegged the second quarter of 2013 as the worst three-month period during that long slide, with all the research firms reporting year-over-year unit shipment declines inside the double digits for the quarter ending in June.
The two research firms recently reported another year-over-year decline in international Pc shipments for the third quarter, but the rate of decline appeared to have decreased and was back down to single digits.
For the record, Intel's three.5 % year-over-year decline in Computer Client Group revenue was a good deal better than the reported year-over-year drop in Computer shipment numbers for the third quarter, which Gartner put at 8.6 % and IDC had at 7.6 percent.
Going forward, Intel talked up the ramp of its fourth-generation, 22-nanometer Core processors, including low-power "Haswell"-class chips designed for fanless tablet and 2-in-1 tablet-laptop designs.
And as the chip giant transitions from traditional Pc type elements to hybrids, tablets, and smartphones, Intel's chief monetary officer, Stacy Smith, appeared to offer you an early obituary for netbooks, a item category that was going gangbusters for the business just a few years ago, and which helped usher in its Atom item line.
"Netbooks are coming to their end-of-life as a item category. We're now seeing single digits of income from netbooks whereas last year at this time they had been still doing very well," Smith said during an earnings call with investors and analysts.
The world's biggest Computer and server chip maker reported income of $13.5 billion for its third quarter, up five % in the second quarter and flat compared using the third quarter of 2012. Earnings of $3 billion had been up to the tune of 48 % sequentially, as Intel cleared a cool $1 billion a lot more in net earnings than it had in the second quarter.
"The third quarter came in as expected, with modest development in a difficult environment," Intel CEO Brian Krzanich stated within a statement. "We're executing on our method to provide an increasingly broad and diverse solution portfolio that spans key growth segments, operating systems, and form elements. Given that August, we've introduced much more than 40 new items for industry segments in the Internet-of-Things to datacenters, with an increasing focus on ultra-mobile devices and 2 in 1 systems."
Intel's Data Center Group enjoyed its best sales quarter ever, the organization said, with revenue of $2.9 billion around the quarter, representing a 6.2 % sequential increase and a 12.2 % year-over-year jump. The chip giant's non-server, non-PC Intel architecture businesses had third-quarter sales of $1.1 billion, up 13.three percent in the second quarter but down 9.3 percent in the same period final year.
But Computer business watchers will likely be most interested in the third-quarter numbers for Intel's Pc Client Group. That essential business unit had income of $8.four billion, which was a three.5 percent raise from the second quarter but a three.5 % decline year more than year.
Patrick Moorhead, principal analyst for Moor Insights & Strategy, stated Intel's overall financials and its Pc unit numbers in particular were an encouraging sign for the company.
"Considering PCs are suffering, Intel had a great third quarter. The proving ground for Intel will be during the holidays when the latest Intel-based 2-in-1's and Android tablets hit the market place," Moorhead stated.
It may be too soon to say, but Intel's showing could point to the second quarter of this year being the bottoming out period for a international Pc market place that has shrunk for six straight quarters, according to Gartner.
So far this year, both Gartner and IDC have pegged the second quarter of 2013 as the worst three-month period during that long slide, with all the research firms reporting year-over-year unit shipment declines inside the double digits for the quarter ending in June.
The two research firms recently reported another year-over-year decline in international Pc shipments for the third quarter, but the rate of decline appeared to have decreased and was back down to single digits.
For the record, Intel's three.5 % year-over-year decline in Computer Client Group revenue was a good deal better than the reported year-over-year drop in Computer shipment numbers for the third quarter, which Gartner put at 8.6 % and IDC had at 7.6 percent.
Going forward, Intel talked up the ramp of its fourth-generation, 22-nanometer Core processors, including low-power "Haswell"-class chips designed for fanless tablet and 2-in-1 tablet-laptop designs.
And as the chip giant transitions from traditional Pc type elements to hybrids, tablets, and smartphones, Intel's chief monetary officer, Stacy Smith, appeared to offer you an early obituary for netbooks, a item category that was going gangbusters for the business just a few years ago, and which helped usher in its Atom item line.
"Netbooks are coming to their end-of-life as a item category. We're now seeing single digits of income from netbooks whereas last year at this time they had been still doing very well," Smith said during an earnings call with investors and analysts.
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